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CHANNEL
STRUCTURE: AN
OVERVIEW OF
DETERMINANTS
Introduction
Distribution
Introduction
(contd.)
Structure
of channels requires a
set of strategic decisions
The appropriate intermediary
Distribution intensity
Type
of intermediary
The coverage of the market
The kind of distribution (direct or
indirect)
of a channel - considerable
freedom of action in matters of
marketing policy.
Channel choice is a cost & financial
decision, and has control aspects of
channels and their adaptability.
Current channels literature cant
explain channel structure came to be
and how it will change over time.
The Question is
Firms are able to choose or only adapt in
a given channel structure? What factors
beneath it?
for a brand.
coordination efforts.
Inverse relationship.
Support programs.
Influencing factors of a
channel structure.
Consumer.
Market.
Marketing
The
The
The
The
The
mix.
life cycle of a product.
number of products produced.
pricing factor.
promotion strategy.
mass media.
Factors Determining
Distribution Structure
Buying
Behavior
Types of Goods
Product Characteristics
concentration
Intensity of competition
Frequency of purchase
Availability
Product Differentiation
Habits
Product Characteristics
Market Factors
Company Factors
Conclusion
Distribution Intensity has received little attention by
marketing researchers lately. After a literature review
we built a framework with several items to be
tested by empirical studies.
Further research must be set to accomplish more
understanding about channel design. We also know
what factors determine a given channel structure.